©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
Business Results for 4Q and Full Fiscal Year September 2016
November 8, 2016
SEPTENI HOLDINGS CO., LTD. www.septeni-holdings.co.jp/en/ Securities Code: 4293
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
6.Appendix
2
Index
4.Full Year FY9/16 Review
1.Quarterly Consolidated Earnings Overview
2.Internet Marketing Business
3.Media Content Business
- From FY9/16, we have applied the IFRS in place of J-GAAP, and we present the results for FY9/15 by rearranging them on the basis of IFRS. - We voluntarily disclose “net sales” in the past as reference information and disclose “revenue” as an indicator based on the IFRS. For revenue in Advertising Agency Sales, which make up most of the Internet Marketing Business, only the margin portion is posted as a net amount.
- To appropriately express the actual condition of business, we voluntarily disclose “Non-GAAP operating income.” Non-GAAP operating income is a profit indicator of constant business performance determined by adjusting temporary factors, such as the amortization of intangible assets that are recognized at the time of acquiring a subsidiary, impairment losses and gains or losses on the sales of fixed assets from the IFRS-based operating income.
- The numbers in this material are rounded to the nearest unit.
5. Policies for the Mid-Term Plan and FY9/17, and Earnings Estimates for 1Q FY9/17
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED. 3
1.Quarterly Consolidated Earnings Overview
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
Revenue ¥4,468mn(up 13.9% year on year)
¥683mn(Down 32.8% year on year)
Revenue expanded, and Operating Loss reduced quarter on quarter.
Non-GAAP Operating Income
Revenue ¥3,385mn(Up 6.8% year on year)
¥1,335mn(Up 10.7% year on year)
Revenue ¥196mn(3.0times year on year)
¥-168mn(Down ¥18mn year on year)
Non-GAAP Operating Income
Non-GAAP Operating Income
4
Consolidated results
Internet Marketing Business
Media
Content
Business
4Q (Jul-Sep) Consolidated Earnings Highlights
Operating income decreased due to the posting of a bad debt expense and large-scale promotional programs for non-core business.
A bad debt expense of ¥96mn was posted to cover doubtful accounts receivable.Operating income stood at ¥1,431mn excluding the bad debt expense (up 18.6% year on year).
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
4Q FY9/16 4Q FY9/15
Value Share YY Change Value Share
Revenue 4,468 100.0% +13.9% 3,922 100.0%
Gross Income 3,459 77.4% +6.7% 3,243 82.7%
SG&A 2,777 62.2% +24.6% 2,229 56.8%
Non-GAAP Operating Income
683 15.3% -32.8% 1,017 25.9%
Operating Income 565 12.7% -0.7% 569 14.5%
Profit for the period from continuing operations
206 4.6% -14.2% 240 6.1%
Profit for the period attributable to owners
of the parent 477 10.7% +54.1% 309 7.9%
4Q FY9/16 Estimate
4,750
―
―
850
―
―
654
(units:¥mn)
5
【Reference】Net Sales 19,127 ― +3.7% 18,437 ― 20,400
Consolidated Income Statement (Jul-Sep)
Revenue did not increase as expected, and a bad debt expense of ¥96mn was posted to cover doubtful accounts receivable in the Internet Marketing Business.
In Non-core business, Non-GAAP operating losses stood at ¥371mn due to the implementation of large-scale promotional programs for a game. In addition, an impairment loss of ¥177mn was posted pertaining to investments from a limited liability partnership.
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
3,169 3,245 3,416 3,364 3,385
66116
147 142 196714
625
6321,001 943
1,206 1,258 1,413 1,325 1,335
-150 -194 -176 -181 -168
66
-14 -49
108
-371 -105 -93 -128 -114
-112
25.9%
24.3%25.4%
25.5%
15.7%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
-650
-150
350
850
1,350
1,850
2,350
2,850
3,350
3,850
4,350
4,850
4Q 1Q 2Q 3Q 4Q
2015/9期 2016/9期
6
4,468
4,181 3,922
4,471
683 1,061 1,017
1,138
15/4Q 16/2Q 16/1Q 16/4Q 16/3Q
Revenue
(units:¥mn)
3,940
958
1,144 1,167
Core Business
1,056
15.3%
Quarterly Consolidated Earnings Trend (by Business Segment)
Operating margin (relative to revenue)
Non-GAAP Operating Income
Internet Marketing Media Content Non-core(AXEL MARK) Adjustment (corporate expenses, etc.)
*The statement of intersegment revenue elimination is omitted, so the sum of revenues in each business does not match consolidated revenue (underlined numbers).
The total Non-GAAP operating income of Core businesses increased 10.5% year on year.
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
1,567 1,552 1,578 1,646 1,587
245 262 256 262
257
107 108 130 158
483 310 359 369 348
450
0
500
1,000
1,500
2,000
2,500
4Q 1Q 2Q 3Q 4Q
2015/9期 2016/9期
2,333 2,281
7
2,413
2,777
2,229
(units:¥mn)
Quarterly Consolidated SG&A Trend
FY9/15 FY9/16
Labor costs others Advertising expenses Rent expenses, etc.
*The booking rules have changed by transferring some of the labor costs in the Internet Marketing Business to costs and terminating the amortization of goodwill as a result of applying the IFRS (numbers are presented by rearranging them of 4Q FY9/15).
Rose ¥548mn year on year, mainly due to increases in advertising expenses and other (bad debt expense).
→Bad debt expenses:96
→Non-core:373
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED. 8
2.Internet Marketing Business
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED. 9
4Q FY9/16 4Q FY9/15
Value Share YY Change Value Share
Revenue 3,385 100.0% +6.8% 3,169 100.0%
Gross Income 3,096 91.5% +5.3% 2,940 92.8%
SG&A 1,763 52.1% +1.5% 1,738 54.8%
Non-GAAP Operating Income
1,335 39.4% +10.7% 1,206 38.1%
4Q FY9/16 Estimate
3,563
―
―
1,456
【Reference】Net Sales 18,211 ― +2.7% 17,738 ―
Internet Marketing Business Earnings Overview
(units:¥mn)
Business remained firm in Japan but sluggish overseas due to a decrease in advertising for large-scale projects.
Overall transactions and revenue did not increase as expected.
The operating margin increased despite the posting of ¥96mn as a bad debt expense to cover doubtful accounts receivable. Operating income stood at ¥1,431mn excluding the bad debt expense (gross margin: 42.3%; increase in the margin: up 18.6%).
Earnings from the transactions of advertisement products offered to LINE increased as expected.
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
3,169 3,245 3,416 3,364 3,385
1,206 1,258 1,413 1,325 1,335
38.1% 38.8%41.4%
39.4%39.4%
0.0%
10.0%
20.0%
30.0%
40.0%
0
1,000
2,000
3,000
15/4Q 16/1Q 16/2Q 16/3Q 16/4Q
収益 Non-GAAP営業利益 営業利益率(対収益)
10
(金額単位:百万円)
Revenue Non-GAAP Operating Income
Operating margin (relative to revenue)
(units:¥mn)
Internet Marketing Business Quarterly Earnings Trend
The operating margin remained at a high level in 16/4Q despite the posting of ¥96mn as a bad debt expense.
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
( )
11
¥14.0bn (YonY+15%)
¥4.0bn
(YonY+12%)
21.8%
10.2%
15/4Q 16/1Q 16/2Q 16/3Q 16/4Q
121 122 136 142 140
15/4Q 16/1Q 16/2Q 16/3Q 16/4Q
35.5 34.0 39.3 41.2 39.6
15/4Q 16/1Q 16/2Q 16/3Q 16/4Q
34.5 31.1 19.0 21.8 18.5
76.8%
¥1.9bn (YonY-46%)
( )
Results of Internet Marketing Business Focus
Mobile Global Social
(Volumes of smartphone advertising) Sum of volumes for Facebook, Twitter, LINE and Instagram
Sum of volumes for overseas customers and volumes of distribution of domestic
customers for overseas
(units:¥100mn)
*1. The numbers in the pie chart show the percentage of ¥18.2bn, the overall business sales (volumes) in this quarter.
*2. The volumes in each area include an overlapped portion.
10.2%
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
100
169
270 303
532
0
25
50
75
100
125
150
175
200
225
250
275
300
325
350
375
400
425
450
475
500
525
15/4Q 16/1Q 16/2Q 16/3Q 16/4Q
52.0 55.6 56.5 55.6 55.5
0.0
25.0
50.0
15/4Q 16/1Q 16/2Q 16/3Q 16/4Q
12
QonQ
+76%
Internet Marketing Business New Focus
Volumes related Application Video advertising
(units:¥100mn)
( ) ※Volumes in 4Q/2015=100 Volumes of Advertisement
promoting application
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
Internet Marketing Business Topics
13
Global
Lion Digital Global LTD (Lion & Lion), a top-ranking
digital agency in Southeast Asia, was made a
subsidiary (in October 2016).
The global network expanded to 14 bases in 8 countries.
The aim is to expand operation after FY9/2017.
Outline of Lion & Lion
Date of establishment
June 2012
Operation bases
・Kuala Lumpur, Malaysia
・Jakarta, Indonesia
・Hong Kong
・Singapore
Sales Approx. 23 million US dollars (estimate for FY12/16)
Number of employees
Approx. 170
Composition of shareholders
・The Company group: 96.01% (acquisition at a price of approx. ¥1.4 billion)
・Management: 3.99%
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED. 14
3.Media Content Business
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
4Q FY9/16 4Q FY9/15
Value Share YY Change Value Share
Revenue 196 100.0% +196.5% 66 100.0%
Gross Income 114 58.4% +495.8% 19 29.1%
SG&A 282 144.1% +66.2% 170 257.1%
Non-GAAP Operating Income
-168 -85.8% (-18) -150 -227.7%
In the Manga Content Business, the scale of platform expanded steadily and advertisement revenue increased.
Other new businesses grew firmly. Operating Loss in the Media Content Business reduced from the previous quarter.
15
4Q FY9/16 Estimate
185
―
―
-173
Media Content Business Earnings Overview
(units:¥mn)
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED. 16
Revenue expanded, and Operating Loss reduced quarter on quarter.
(単位:百万円)
66
116147 142
196
-150
-194-176 -181 -168
-200
0
200
15/4Q 16/1Q 16/2Q 16/3Q 16/4Q
収益 Non-GAAP営業利益
(units:¥mn)
Revenue Non-GAAP Operating Income
Media Content Business Quarterly Earnings Trend
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
198 234
281
332
398
4.7 5.4
7.1
9.2
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
0
50
100
150
200
250
300
350
400
10月 1月 4月 7月 10月
2015年 2016年
累計DL数(万) PV数(億)
13.5
17
Sales of native advertising in the application “GANMA!AD” extended steadily.
Manga Content Business Overview
Monthly page views and accumulated application downloads of GANMA!
Comic books published in this quarter
2015 2016
Oct Jan Apr July Oct
Over 3.5million Downloads
Total number of DL(ten thousand)
The number of monthly PV(100million)
397
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED. 18
4.Full Year FY9/16 Review
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
Revenue ¥17,060mn(Up 19.6% year on year)
¥3,841mn(Up 26.8% year on year)
Both Revenue and Non-GAAP Operating Income reached
a new record high for the fifth consecutive year.
Both business expansion and improvement profitability were achieved.
Revenue expanded centering Manga Content Business
Non-GAAP Operating Income
Revenue ¥13,409mn(Up 20.8% year on year)
¥5,331mn(Up 39.7% year on year)
Revenue ¥601mn(2.9times year on year)
¥-718mn(Down ¥187mn year on year)
Non-GAAP Operating Income
Non-GAAP Operating Income
19
Full Year FY9/16 Consolidated Earnings Highlights
Consolidated results
Internet Marketing Business
Media
Content
Business
※
*Prior to FY9/14, comparison was made by calculating the numbers equivalent to those in the Japanese standards.
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
FY9/16 FY9/15
Value Share YY Change Value Share
Revenue 17,060 100.0% +19.6% 14,267 100.0%
Gross Income 13,623 79.9% +18.9% 11,461 80.3%
SG&A 9,803 57.5% +15.9% 8,457 59.3%
Non-GAAP Operating Income
3,841 22.5% +26.8% 3,030 21.2%
Operating Income 3,730 21.9% +44.6% 2,579 18.1%
Profit for the period from continuing operations
2,252 13.2% +38.8% 1,622 11.4%
Profit for the period attributable to owners
of the parent 2,519 14.8% +7.1% 2,351 16.5%
FY9/16 Estimate
17,342
―
―
4,007
―
―
2,696
Consolidated Income Statement (Full Year)
20
【Reference】Net Sales 76,401 ― +18.4% 64,548 ― 77,675
(units:¥mn)
Achieved a significant increase in operating income on the back of profit growth in the Internet Marketing Business, which recovered losses caused by prior investments in the Media Content business and Non-core business.
The dividend will be increased for the fourth consecutive year (to ¥16 per share) thanks to an increase in net income attributable to owners of the parent, offsetting a backlash to the income (¥653mn) posted in the previous year as a result of the sale of the DM Business.
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
11,096
13,409
207
6013,072
3,200
0
5,000
10,000
15,000
15/通期 16/通期
21
+20.8%
+39.7%
(-187)
Revenue Non-GAAP Operating Income
(百万円) 17,060 3,841
14,267 3,030
3,816
5,331
-530 -718
122
-326-378
-447-1,500
0
1,500
3,000
4,500
15/通期 16/通期
Full Year Consolidated Earnings Trend (by Business Segment)
(units: ¥mn)
(units: ¥mn)
FY9/15 FY9/16 FY9/15 FY9/16
Non-core(AXEL MARK) Internet Marketing Media Content Adjustment (corporate expenses, etc.)
*The statement of intersegment revenue elimination is omitted, so the sum of revenues in each business does not match consolidated revenue (underlined numbers).
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
Internet Marketing Business Full-Year Review
22
Revenue Non-GAAP Operating Income
Value(¥mn) YY Change Value(¥mn) YY Change Operating margin YY Change
13,409 +20.8% 5,331 +39.7% 39.8% +5.4pt
Earnings
Mobile
Social
Global
- New bases were established in New York and Beijing.
- Transactions of products related LINE surged.
- High-level growth was achieved in both the Mobile and Social media businesses.
- The market share rose, driven by the business of in-feed advertising.
- Transactions declined approximately 5%, to ¥9.0 billion, due to the impact of a decrease in advertising for large-scale projects.
- Transactions increased approximately 37% year on year, to ¥15.4 billion.
- Net sales increased to ¥73.2 billion, raising the operating margin for
sales for the fifth straight year to 7.3%.
- Earnings from the transactions of smartphone advertising grew approximately 40% year on year to ¥54.0 billion, accounting for approximately 74%.
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
Media Content Business Full-Year Review
23
Revenue Non-GAAP Operating Income
Value(¥mn) YY Change Value(¥mn) YY Change Operating margin YY Change
601 +190.7% -718 (-187) -119.4% +137.1pt
Other New Businesses
Manga Content Business
- The medical platform business was included in the consolidated results from this fiscal
year, in addition to the platform businesses for recruitment and social contribution.
- Each business grew steadily.
- Initiatives to commercialize the Company’s intellectual property.
Twenty-seven new works were published as books. A total of 43 independent
volumes were released, including sequels.
- GANMA!, a manga content app., is spreading rapidly.
The latest cumulative downloads are 3,970,000 DLs, an increase of approximately
two times year on year. Monthly page views grew to as many as 1.35 billion PVs.
- Sales of GANMA! AD, a native advertisement in the application, commenced.
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
Midterm Business Policies( FY9/14 to present )
24
Global
Concept
Social
Mobile
Business Focus
Increase the share of highly profitable businesses
Create a mainstay business second to advertising
“Double profits”
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
1,593
2,259
3,030
3,841
3.5%
4.2%
4.7%5.0%
0.0%0
2013/9期 2014/9期 2015/9期 2016/9期
25
J-GAAP IFRS(Non-GAAP Operating Income)
Midterm Business Policies(FY9/14 to present) - Concept
approx.2.4times
Operating Income(¥mn)
Operating margin on sales
“Double profits”
FY9/13 FY9/14 FY9/15 FY9/16
Operating income increased approximately 2.4 times in three years, and profitability also improved.
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
107
540
0
2013/9期 2016/9期
19
154
0
2013/9期 2016/9期
26
Mobile Social Global
approx.
5.1times
(units:¥bn)
5
90
0
2013/9期 2016/9期
Midterm Business Policies(FY9/2014 to present) - Key Business
approx.
8.3times
approx.
16.5times
(Volumes of smartphone advertising) ( ) ( ) Sum of volumes for Facebook, Twitter, LINE and Instagram
Sum of volumes for overseas customers and volumes of distribution of domestic
customers for overseas
* The volumes in each area include an overlapped portion.
FY9/13 FY9/16 FY9/13 FY9/16 FY9/13 FY9/16
10.7
54.0
1.9
15.4
0.5
9.0
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED. 27
5. Policies for the Mid-Term Plan and FY9/17, and Earnings Estimates for 1Q FY9/17
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
Midterm Business Policies(FY9/2017~)
28
Non-GAAP Operating Income:¥10bn
Enhance our own media
Expand advertising business globally
Invest in what comes after the smartphone
Earnings target
Basic policies
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
Enhance our own media
Expand advertising business globally
29
Internet Marketing Business
Media Contents Business
Stance of each business
[Recognition of the environment in the market for smartphone advertisements]
The domestic market is gradually going to mature.
Strong growth continues globally with an improved ecosystem.
[Domestic market]
By strengthening the position established in the field of smartphones/
social media, the share will be expanded and profitability will be increased.
[Overseas market]
Both organic business growth and M&A will be the engine
for subsequent growth.
Development of GANMA! as the company's own medium that constitutes the primary revenue sources of the group.
By expanding the scale of the company's own media, powerful segmental synergy with the Internet marketing business will be generated.
Midterm Business Policies(FY9/2017~)
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
Policies for FY9/17
Aim to increase operating income on a consolidated basis through the sustainable growth of the Internet Marketing Business, while at the same time making large investments in the Manga Content Business to accelerate growth in and after the next fiscal year.
- The ratio of voting rights will be reduced to less than 30% due to the sale. Axel Mark will be excluded from consolidated companies and become an equity method affiliate.
- Some of the Axel Mark shares held by the Company will be sold in November 2016.
- Establishment of the foundation for the monetization of the manga content business With measures for the profitability of the Manga Content Business ready for
implementation, large-scale marketing investments will be made in or after the second half to expand the user base of GANMA!.
- Aim to increase market share and improve profitability.
- Focus on expanding global business, video advertising and in-
house media.
Internet Marketing Business
Media Content Business
Non-core business
→ Excluded from
consolidated
financial statements
30
- Additional investment of about 500 to 600 million yen annually to increase the media scale to more than 10 million DL
- KPI for monetization: LTV(revenue from applications)> CPI(cost of traffic acquisition)
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[Reference] Retroactive corrections of P/L of FY9/16 (revised statement after reclassification)
31
Consolidated Income Statement FY9/16
Value Share
Revenue 17,060 100.0%
Gross Income 13,623 79.9%
SG&A 9,803 57.5%
Non-GAAP Operating Income
3,841 22.5%
Operating Income 3,730 21.9%
Profit for the period from continuing operations
2,252 13.2%
Profit for the period from discontinued operations
- -
Profit for the period attributable to owners
of the parent 2,519 14.8%
【Reference】Net Sales 76,401 ―
After retroactive corrections (forecast)
Value Share
13,862 100.0%
12,478 90.0%
8,350 60.2%
4,147 29.9%
4,154 30.0%
2,717 19.6%
△465 -
2,519 18.2%
73,203 ―
(units:¥mn)
The retroactively corrected profits and losses of non-core businesses in FY9/16, which are to be compared in the next fiscal year and thereafter with the businesses excluded from the consolidated results, are presented after they are reclassified as discontinued businesses.
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
Earnings in 1Q FY9/16
Earnings Estimates for 1Q FY9/17
Expected growth rate
Revenue 3,315 3,700 +11.6%
Non-GAAP Operating Income
972 980 +0.8%
Profit for the period attributable to owners of
the parent 633 1,700 +168.7%
32
【Reference】Net Sales 17,260 19,000 +10.1%
(units:¥mn)
1Q(Oct-Dec) Consolidated Earnings Estimates
With the sale of Axel Mark, the Company expects to post ¥1.0 billion from discontinued businesses as net income. Based on this assumption, profit for the period attributable to owners of the parent is expected to increase significantly.
The Internet Marketing Business is expected to achieve an increase in revenue and profit year on year.
In the Media Content Business, sales are expected to increase significantly year on year, mainly on the back of the Manga Content Business, although the amount of the deficit will remain unchanged due to the continuation of prior investments.
* The numbers in the above results for 1Q of FY9/16 are presented after reclassifying non-core businesses as discontinued businesses.
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED. 33
Non-GAAP Operating Income
Earning in 1Q FY9/16
Earnings Estimates
for 1Q FY9/17 YY Change
1,258 1,297 +3.1%
△194 △195 (-1)
△93 △122 (-30)
972 980 +0.8%
Revenue
Earnings in 1Q FY9/16
Earnings Estimates
for 1Q FY9/17 YY Change
Internet Marketing Business
3,245 3,529 +8.8%
Media Content Business
116 207 +77.9%
Elimination or corporate
△47 △36 (+10)
Total 3,315 3,700 +11.6%
(units:¥mn)
1Q(Oct-Dec) FY9/17 Earnings Estimates by Business Segment
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED. 34
All estimates, opinions and plans provided in this document are based on the best information available at the time of the creation of this document on November 8, 2016 and we do not guarantee their accuracy. Therefore our actual results may differ due to various unforeseen risk factors and changes in global economies.
Contact Information
SEPTENI HOLDINGS CO., LTD. www.septeni-holdings.co.jp/en/ Corporate Planning, IR Division TEL: +813-6857-7258 E-mail: [email protected]
Thank you for your interest!
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED. 35
6.Appendix
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
Company Overview
36
As of September 30, 2016
Company Name SEPTENI HOLDINGS CO., LTD.
Representative President and Representative Director Koki Sato
Headquarters Sumitomo Fudosan Shinjuku Grand Tower, 8-17-1 Nishishinjuku, Shinjuku-ku, Tokyo
Securities Code 4293 (JASDAQ)
Business Realm The holding company for a group of companies conducting primarily Internet-related and other businesses
Established October 29, 1990
Capitalization ¥2,085 million
Shares Issued 27,728,300 shares (Including 1,784,831 treasury shares)
Consolidated Workforce
930 full time employees, 1159 full time and contracted employees
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
Main Group Companies by Business Segment
37
November 8, 2016
Holding Company
SEPTENI HOLDINGS CO., LTD
SEPTENI VENTURES Co., Ltd.
SEPTENI CO., LTD Internet ad agency/Providing assistance for overall promotions on internet
Septeni Asia Pacific Pte. Ltd. Internet ad agency in Asia and Pacific Ocean region
MANGO Inc. SEM Operation Business Septeni America, Inc. Internet ad agency based in North America region
Vasara Inc. Internet ad agency Septeni Europe Co.,Ltd Internet ad agency based in Europe region
HighScore, Inc. Social Media Marketing Support Business
SEPTENI China Limited Internet ad agency based in China
Septeni Original,Inc. Plannnig and development of web service
SEPTENI TECHNOLOGY CO., LTD. Web service development
SETPENI CROSSGATE CO., LTD. Ad Network and Platform Business
JNJ INTERACTIVE INC. Internet ad agency in South Korea
Tricorn Corporation CRM Service Business Lion Digital Global LTD Internet ad agency based in Southeast Asia
New Business Development
Internet Marketing Business
Media Content Business
COMICSMART INC. Manga Content Business gooddo, Inc. Platform business of social contribution
ViViVit Inc. Recruitment platform business Pharmarket, Inc. Medical platform business
TowaStela, Inc. Childcare platform business
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
Business Model for the Internet Marketing Business
38
Comprehensive Marketing Support Services for corporations leveraging the Internet.
Internet advertising sales and provision of various web solutions, We will provide In-House Services
such as marketing platforms including an ad network and cloud-based CRM services.
Clients
Internet Marketing Business
Web Solutions
In-House Services
• Website creation, operations
• Creative • SEO • Social media creation, operations
• Cloud based CRM Systems
• Advertising platforms • Internet media
Users
Internet Media Advertising
Sales
Solution Provision
Service Provision
Advertising Purchases
Advertising Distribution,
Display
Campaign Implementation, Operation, Effectiveness Measurement
Information Dispatch
Advertising Agency Sales
etc
etc
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
Users
Media Content Business
Business Model for the Media Content Business
39
Manga Artists
Cultivation
Providing Works
Distribution Manga Content Business
Management of Manga Artists
Manga Distribution Service
(GANMA!)
ViViViT
gooddo
Pharmarket
Provision of information on job
seekers
Activity support
Provision of solutions for medical institutions
Corporation/ Group/ Medical
institutions Social contribution platform business
Recruitment platform business
Medical platform business
Registration of information
Support action on the Internet
In addition, the business develops platform-type businesses related to “recruitment,” “social contribution” and “medical services” as a new business born from intrapreneurship.
The Manga Content Business engages in the cultivation and production of Manga artists and the Manga distribution service for the purpose of planning and developing our own intellectual property (IP).
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED. 40
End FY9/16 End FY9/15 Change Main Change
Current Assets 26,268 22,275 +3,993 Cash and deposits:+3,786
Accounts receivable:+165
Non-current Assets 3,712 3,360 +352 Investment securities:+153
Long-term deferred tax assets: +121
Total Assets 29,981 25,635 +4,346
Current Liabilities 14,191 13,097 +1,095 Accounts payable:+450
Income taxes payable:+554
Non-current Liabilities
744 247 +497 Long-term loans payable:+509
Total Liabilities 14,935 13,343 +1,592
Total Capital 15,046 12,292 +2,754 Retained earnings:+2,320
Capital surplus: +456
Total Liabilities and Capital
29,981 25,635 +4,346
Consolidated Statement of Financial Position
(units:¥mn)
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED. 41
End FY9/16
Main Changes FY9/15
Cash Flows from
Operating Activities 3,209
Profit before taxes from continuing operations:+3,847
Increase in operating receivables:+450
Payment of corporate income tax: △1,597
1,874
Cash Flows from
Investing Activities △109
proceeds from sales of investment securities:+277
Purchase of securities:-197
Purchase of intangible assets:-△262
1,258
Cash Flows from
Financing Activities 801
Increase (decrease) in loans payable:+270
Changes in a parent’s ownership interest in a subsidiary that do not result in a loss of control:+884
Cash dividends paid:△363
△124
Effect of Exchange Rate Changes on Cash and Cash Equivalents
△114 △1
Net Increase (Decrease) in Cash and Equivalents 3,786 3,007
Cash and Equivalents at Term End 15,481 11,695
Consolidated Statement of Cash Flows
(units:¥mn)
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
755 769 771 866 866
36 43 48
54 58 132 131 133
138 147 79 79 79
86 88
0
200
400
600
800
1000
15/4Q 16/1Q 16/2Q 16/3Q 16/4Q
42
ネットマーケティング事業 メディアコンテンツ事業
1,144
1,002 1,022 1,031
1,159
SEPTENI Group Workforce Number Trend
Non-Core Business(AXEL MARK) Internet Marketing Business Media Content Business Holding Company
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